Lessons from the richest man who ever lived
- Peter Vanham - World Economic Forum
- 24 mai 2016
- 2 min de lecture
He lived at the same time as Christopher Columbus, Martin Luther, and Cesare Borgia. He was the personal banker of two Holy Roman Emperors. But most of all, he was the richest man of his time, and one of the richest men who ever lived, owning some 2 per cent of the known world’s GDP.
What are the lessons to learn from Jakob Fugger, the 16th century German banker? In “The Richest Man Who Ever Lived”, author Greg Steinmetz describes the factors that led to Fugger’s success. Some of them are still useful for those seeking to get ahead today.
1. He got international experience at an early age
Fugger, born and raised in Augsburg, Germany, left his home before he was even 18 to do an apprenticeship in Venice, Italy. It taught him skills, such as accounting, a new language, Italian, and gave him a good network at an early age, as Venice in the late 15th century was the world centre of trade and finance.
What we can learn from it today: learning languages, going abroad, completing internships… These are elements that still count in today’s working world.
2. He was meticulous about accounting
At a time when most of his competitors kept sloppy books if any at all, Fugger kept detailed accounts of his bank’s operations in the form of double bookkeeping. That was a novelty for the time. His bank had branches in a few dozen cities across Europe, and he made all of them submit a year-end balance, so he could himself compile a single statement showing all of his company’s assets and liabilities. It gave him a competitive edge, as he knew much better than others whether or not he could afford to give loans and at which conditions.
What we can learn from it today: Keep track of your personal finances. How many people forget to save or invest in their twenties, ending up with regrets later? Accounting discipline can give you an edge both in work and in life.
3. He took a risk when no one else would
As a young banker, Fugger had little to offer over his competitors. But when the Archduke of Austria, Sigmund, desperately needed a loan, Fugger decided to offer it when no other banker would. Sigmund was known for squandering his money on women and feasts, and thus wasn’t exactly trustworthy. But he was creditworthy: after all, he was the Archduke. In return for the loan, Fugger sought and obtained control over the silver mine Sigmund owned. It paid off handsomely: with his disciplined approach, he made the mine into a profitable affair and catapulted himself to the Major League of German bankers.
What we can learn from it today: Dare to invest in your career at some point in your life, if you believe in your capacities and your ability to pay yourself back.
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